@Gator88NE, though if you put in carrot and sticks tied to graduation rate, that could lead to perverse incentives.
So a school that typically enrolls high-risk (of flunking out) kids may stop taking them in altogether; or just graduate everyone even if they are barely literate. That may not actually be better for the community that a school traditionally served.
For all we know, CSU-LA is actually doing a stellar job and has done the very best it can with the entering students that it is given.